Question: Issued 5% bonds, dated January 1, with a face amount of $2000 on January 1, 2014, at a price of $1840 For bonds of similar

  • Issued 5% bonds, dated January 1, with a face amount of $2000 on January 1, 2014, at a price of $1840
  • For bonds of similar risk and maturity, the market yield is 6%
  • Interest is paid semi-annually on July 1 and January 1
  1. On the issuance date of January 1, 2014 the effect on cash is to increase/(decrease) it by:
  2. On the first interest payment date of July the effect on cash is to increase/(decrease) it by:

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